SG Market (05 Apr 13)

SG Market: S’pore shares may get off to a sombre start after a downbeat US labor market report amid festering tensions on the Korean peninsula. Despite the Bank of Japan's aggressive new monetary easing program, the local market is unlikely to take on any significant direction and we could see the STI consolidating around current levels with the immediate support established at 3300 while resistance remains pegged at 3320-3370 regions. Stocks to watch out for: *ST Engrg: Electronics arm secures $151m of rail, satellite communications and smart utility contracts in 1Q13. *Hyflux: Signed 2 MoUs to develop water and environmental projects in 2 cities in China’s Yunnan province. The total investment value of the projects covering water recycling, wastewater treatment and portable water treatment plants and related infrastructure in Quqing and Chuxiong is estimated to be Rmb3.2bn. *Amara: Entered into MoU with Youth Force Hotel Co and Youth Force Construction Co to develop hotels and other real estate projects in Myanmar. The first JV involves developing and operating a hotel in Dagon Township in Yangon. *Yoma: Joins parent FMI, Digicel Group and Soros-led Quantum Strategic Partners to bid for one of 2 mobile phone licenses in Myanmar. Myanmar govt will announce pre-qualification results on 11 Apr and final decision on the award is expected on 27 Jun. *Metro: Selling its S’pore warehouse OC Land for $39.8m or $498 psf ppr, which sits on a 31,978 sf site. Sale will reap a $29.6m net gain and proceeds will be added to working cap. *CCM Group: Terminated MoU relating to the RTO of Canasea Oil & Gas and proposed disposal of the group’s existing business. *Allied Technologies: Offered Rmb209.6m compensation for compulsory land acquisition of its Suzhou factory and offices office premises by local govt. The sales is expected to yield a gain of $22.3m and raise its NTA to 12.7¢ from 9.09¢.